2 exotic ASX ETFs to spice up your portfolio

BetaShares Nasdaq 100 ETF (ASX: NDQ) is one of the ETFs I would spice up my portfolio with

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Exchange traded funds (or ETFs) can be a cheap and cheerful way of easily adding some diversification spice into your portfolio. Although a lot of us love dividend-paying mammoths like Commonwealth Bank of Australia (ASX: CBA), there is a world outside our big ASX blue-chips and we should all get a piece of it (at least in my humble opinion).

Here are 2 exotic ASX ETFs that can help you do just that.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This ETF from BetaShares tracks the top 100 companies in the US NASDAQ index. You may not realise, but over in the US, they have two main stock exchanges (NASDAQ and the New York Stock Exchange (NYSE)). The NASDAQ is famous for being the 'hipper' of the two – almost all the big tech companies, as well as the new kids on the block like Uber, are NASDAQers.

I think exposure to the NASDAQ index is a great idea, as it filled with companies like Amazon, Apple, Alphabet, Netflix and Tesla who are all shaking up the world as we know it and NDQ gives you a slice of the top 100. NDQ charges a management fee of 0.48% and has generated returns of around 23% each year over the past 3 years.

ETFS Physical Gold ETF (ASX: GOLD)

This ETF is a little different, as it only invests in holding physical gold bullion. While this may not be for everyone (hence exotic), many famous investors like Ray Dalio recommend holding at least some gold as a hedge against the stock market and inflation. Mr Dalio says that gold is essentially cash, but with better value and usually outperforms during any kind of international or economic turmoil. He also puts his money where his mouth is and has a large ownership in a US gold ETF himself.

GOLD is an easy way to 'own' gold without having to get it delivered and safely stored. The ETF holds its gold interests in an HSBC bank vault in London, so you can be pretty confident it's in good hands. GOLD shares have a management fee of 0.4% and have generated a return of 7.95% over the past year.

Foolish Takeaway

Either of these two ETFs would be a useful vehicle to add some spice to your portfolio going forward. I like the idea of GOLD but I think the NDQ ETF is more exciting because it gives us easy access to some of the biggest movers and shakers out there!

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ⏸️ Diversification

Five different pggy banks, indicating a diverse share portfolio
⏸️ Diversification

What does 'good diversification' mean in 2021?

What does 'good diversification' mean in 2021? Are shares enough? Or should investors chase bonds, gold, or even bitcoin?

Read more »

A man wearing thick rimmed black glasses and a business shirt with red suspenders sits at his desk sorting through the earnings report of Nickel Mines
Best Shares

How I'd identify the best shares to buy now for the next decade

Here’s how I’d unearth the best shares to buy for the long term during what is an uncertain period for…

Read more »

comparing asx 200 to global indexes represented by woman holding up multiple countries' flags
⏸️ Diversification

Here's how the ASX 200 compares to other global indices

Ever wondered how the ASX 200 compares with other indices around the world, like the S&P 500 or FTSE 100?…

Read more »

Block letters 'ETF' on yellow/orange background with pink piggy bank
⏸️ Diversification

Which ASX ETFs offer the most diversification?

Does the Vanguard Australian Shares Index ETF (ASX: VAS) offer sufficient levels of diversification for an ASX share portfolio?

Read more »

diversification for asx shares represented by golden eggs with different titles such as bonds, stocks, funds et cetera
⏸️ Diversification

Is your ASX share portfolio too diversified?

ASX shares, US shares, gold, bonds... When it comes to diversification, can you have too much of a good thing?…

Read more »

row of different foreign currency notes rolled up next to each other US dollar 2021
⏸️ Diversification

Are foreign currencies worth investing in?

Can you (and should you) invest in foreign currencies like the US dollar or the British pound? The answer is…

Read more »

Block letters 'ETF' on yellow/orange background with pink piggy bank
⏸️ Diversification

2 ASX ETFs to buy for instant portfolio diversification

Here's why I think you can add BetaShares Asia Technology Tigers ETF (ASX: ASIA) and 1 other ETF for instant…

Read more »

⏸️ How to Invest

3 steps I'd take when investing in today's volatile stock market to make a million

Focusing your capital on financially-sound businesses and diversifying across multiple sectors could help you to make a million in a…

Read more »